The global contract packaging market to grow at a CAGR of 9.54% during the period 2017-2021.

The report covers the present scenario and the growth prospects of the global contract packaging market for 2017-2021. To calculate the market size, the report considers the revenue generated by different vendors through the sales of contract packaging services for various sectors which include food and beverage, consumer goods, personal care, pharmaceutical, and others. The “others” segment includes furniture, apparel, and electrical household appliances. The report also includes a discussion of the key vendors operating in this market.

According to the report, one of the major drivers for this market is Technology implementations. With growing technological implementations in the global contract packaging market, the market is growing because of fast-paced solutions provided by companies. In August 2017, Surepharm Services, a Contract Manufacturing Organization, installed the Blister Express Center 300 (BEC 300) to enhance its productivity. It offers easy, quick, and reliable solutions to fulfil the packaging needs with minimum 10 medicines in varying pack sizes, besides enhancing the flexibility to meet the broad range of contracts. This machine features a three-dimensional (3D) format changeover in less than 30 minutes.

The latest trend gaining momentum in the market is Growing e-commerce industry. The rising Internet penetration and increasing trend of online buying will boost the global contract packaging market during the forecast period. This is because companies that are selling their products through the e-commerce platform lack in-house packaging facility. Therefore, they are bound to go with third-party packaging or contract packaging services.

Further, the report states that one of the major factors hindering the growth of this market is In-house packaging. The manufacturing companies are sometimes comfortable with having the control of the complete production cycle, beginning from production and culminating in the distribution of products. Additionally, contract packaging can be time-consuming as products are transported several times among manufacturers and packagers. Some other reasons that may encourage the use of in-house packaging are an unwillingness to share information with contract packagers, availability of in-house machinery and staff, and high switching costs in situations when the relation between manufacturer and packager does not go well.